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Methods to Amortize Prior Service Cost

Wolz Company, a small business, has had a defined benefit pension plan for its employees for several years. At the beginning of 2019, Wolz amended the pension plan; this amendment provides for increased benefits based on services rendered by certain employees in prior periods. Wolz's actuary has determined that the related prior service cost amounts to $84,000 . Wolz has four participating employees who are expected to receive the increased benefits. The following is a schedule identifying the employees and their expected years of future service:

Employee Numbers	Expected Years of Future Service
1	2
2	3
3	4
4	5

Required:

1 a. Using the straight-line method, compute the average remaining service life. If required, round your answer to one decimal place. _?_ years

1 b. Using the straight-line method, prepare a schedule to amortize the prior service cost. Enter all amounts as positive numbers.

WOLZ COMPANY
Prior Service Cost Amortization
2019 - 2022
	Total Prior Service Cost	Amortization to Increase Pension Expense	Remaining Prior Service Cost
2019	?	?	?
2020	?	?	?
2021	?	?	?
2022	?	?

2 a. Using the years-of-future-service method instead, prepare a set of schedules to determine the amortization fraction for each year. Enter the amortization fraction as a fraction. For example: 3/10.

WOLZ COMPANY
Years of Future Service
Amortization Fractions
	Expected Years of Future Service	Number of Service Years Rendered in 2019	Number of Service Years Rendered in 2020	Number of Service Years Rendered in 2021	Number of Service Years Rendered in 2022	Number of Service Years Rendered in 2023
1	?	?	?
2	?	?	?	?
3	?	?	?	?	?
4	?	?	?	?	?	?
Total		?	?	?	?	?
Amortization fraction		4/14	4/14	3/14	2/14	1/14

2 b. Using the years-of-future-service method instead, prepare a set of schedules to determine the amortization of the prior service cost. Enter all amounts as positive numbers.

WOLZ COMPANY
Years of Future Service
Prior Service Cost Amortization
	Total Prior Service Cost	Amortization Fraction	Amortization to Increase Pension Expense	Remaining Prior Service Cost
2019	?	4/14	?	?
2020	?	4/14	?	?
2021	?	3/14	?	?
2022	?	2/14	?	?
2023	?	1/14	?

? = numbers needed

please answer all 4, this is one question with multiple parts.

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